LAHORE: Speculative trade in sugar has begun pushing prices of the sweetener up even before the arrival of Ramazan and during the sugarcane crushing season.

Sugar prices have registered a Rs12 per kg increase during the last week in city markets as a 50kg bag of the commodity in the local market has reached Rs7400 after an increase of Rs600.

According to the report, the price of sugar per kilogram in the wholesale market has increased from Rs136 to Rs148, while it is being sold at Rs150 per kg by retailers.

Usually, rates of the sweetener come down during the crushing season. But this season the situation is contrary and rates are going up though the crushing season is in full swing.

In December 2024, the ex-mill rate of sugar was Rs125 per kg, but it has now jumped to Rs140 to 143, says a spokesperson for the Sugar Dealers Association. He says that the ex-mill rate for February is being pitched at Rs145.

He says export of sugar and artificial shortage of the commodity is responsible for the price hike. He fears that if the situation is not controlled, there is a risk that the price of sugar will go up further in the month of Ramazan.

Published in Dawn, January 27th, 2025